UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549  FORM 10-Q (Mark One)  XQUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  For the quarterly period ended March 31, 2009  TRANSITION REPORT UNDER SECTION 13 or 15(d) OF THE EXCHANGE ACT For the transition period from ___________ to _____________  Town and Country Appraisal Service, Inc. (Exact name of small business issuer as specified in its charter)  Nevada000-5321426-1703958(State or other jurisdiction of incorporation or organization)(Commission file number)(IRS Employer Identification No.)  John S. Chidester
Town and Country Appraisal Service, Inc.
710 Westbridge Street
PO Box 1041
Blackfoot, ID 83221
(Address of principal executive offices)  208-785-2474(Issuer's telephone number)  Check whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes X    No .  Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company filer.  See definition of accelerated filer and large accelerated filer in Rule 12b-2 of the Exchange Act (Check one):  Large Accelerated Filer  Accelerated Filer  Non-Accelerated Filer  Smaller Reporting Company X.  State the number of shares outstanding of each of the issuers classes of common equity, as of the latest practicable date: 10,000,000 shares of Common Stock, as of  May 1, 2009.  Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act of 1934) (check one): Yes    No X.  Transitional Small Business Disclosure Format (check one): Yes   No X.     TOWN AND COUNTRY APPRAISAL SERVICE, INC.  FORM 10-Q  March 31, 2009  INDEX   PART I-- FINANCIAL INFORMATIONPageItem 1Unaudited Financial Statements3Item 2Managements Discussion and Analysis of Financial Condition7Item 3Quantitative and Qualitative Disclosures About Market Risk9Item 4Control and Procedures9PART II-- OTHER INFORMATIONItem 1Legal Proceedings10Item 2Unregistered Sales of Equity Securities and Use of Proceeds10Item 3Defaults Upon Senior Securities10Item 4Submission of Matters to a Vote of Security Holders10Item 5Other Information10Item 6Exhibits and Reports on Form 8-K10    2    ITEM 1. Financial Information  TOWN AND COUNTRY APPRAISAL SERVICE, INC.  Balance Sheets March 31, 2009 and December 31, 2008  ASSETSMarch 31, 2009December 31, 2008(Unaudited)(Audited)Current AssetsCash$6,002$11,777Accounts Receivable, net-1,275Total Current Assets6,00213,052Property and Equipment, net3,1033,266Total Assets$9,105$16,318LIABILITIES AND STOCKHOLDERS' EQUITYCurrent LiabilitiesAccrued Expenses$24,980$13,698Unearned Income-18,495Total Current Liabilities24,98032,193Stockholders' EquityPreferred stock, $.001 par value; 1,000,000 shares authorized; none issued or outstandingCommon stock, $.001 par value; 74,000,000 shares authorized; 10,000,000 shares issued and outstanding10,00010,000Additional Paid-in Capital(9,340)(9,340)Accumulated Deficit(16,535)(16,535)Total Stockholders' Equity(15,875)(15,875)Total Liabilities and Stockholders' Equity$9,105$16,318   The accompanying notes are an integral part of these statements  3    TOWN AND COUNTRY APPRAISAL SERVICE, INC.  Statements of Operations For the Three Ended March 31, 2009 and 2008 (Unaudited)  Three Months EndedMarch 31,March 31,20092008IncomeRevenue$46,525$$      30,575Operating ExpensesCompensation and Contractor Fees35,18922,129General and Administrative11,3368,446Total46,52530,575Net Loss from Operations--Interest Expense--Net Loss$-$-Basic and Diluted(Loss) per Share$0.00$0.00Weighted AverageNumber of Shares10,000,00010,000,000  The accompanying notes are an integral part of these statements  4    TOWN AND COUNTRY APPRAISAL SERVICE, INC.  Statements of Cash Flows For the Three Months Ended March 31, 2009 and 2008 (Unaudited)  March 31March 3120092008Operating ActivitiesNet Income  (Loss)$-$-Adjustments to reconcile Net (Loss)Depreciation163-Changes in Accounts Receivable1275-Changes in Accrued Liabilities11,2827,569Changes in Unearned Income(18,495)-Net Cash Provided by (used in) Operating Activities(5,775)7,569Net Increase (Decrease in Cash)(5,775)7,569Cash, Beginning of Period11,777-Cash, End of Period$6,002$7,569Supplemental Information:Interest Paid$-$-Income Taxes Paid$-$-   The accompanying notes are an integral part of these statements  5    TOWN AND COUNTRY APPRAISAL SERVICE, INC.  Notes to Unaudited Financial Statements  March 31, 2009 (Unaudited)  NOTE 1  BASIS OF PRESENTATION  The accompanying interim financial statements for the three-month periods ended March 31, 2009 are unaudited and include all adjustments (consisting of normal recurring adjustments) considered necessary by management for a fair presentation.  The results of operations realized during an interim period are not necessarily indicative of results to be expected for a full year.  These financial statements should be read in conjunction with the information filed as part of the Companys Annual Report on Form 10-K of the Company as filed with the United States Securities and Exchange Commission (the SEC) on April 10, 2009.  The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amount of revenues and expenses during the reporting period. Actual results could differ from these estimates.  NOTE 2  GOING CONCERN  Town and Countrys financial statements have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities and commitments in the normal course of business for the foreseeable future. Since inception, the Company has accumulated losses aggregating to $16,535 and has insufficient working capital to meet operating needs for the next twelve months as of March 31, 2009, all of which raise substantial doubt about Town and Countrys ability to continue as a going concern.  The Company will continue seeking business and referrals from its business contacts in Idaho. No assurances can be given as to the likelihood of its success in obtaining new and additional business referrals.    6    ITEM 2  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS  Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995  Information set forth herein contains "forward-looking statements" which can be identified by the use of forward-looking terminology such as "believes," "expects," "may, should" or "anticipates" or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy. No assurance can be given that the future results covered by the forward-looking statements will be achieved. The Company cautions readers that important factors may affect the Companys actual results and could cause such results to differ materially from forward-looking statements made by or on behalf of the Company.  These factors include the Companys lack of historically profitable operations, dependence on key personnel, the success of the Companys business, ability to manage anticipated growth and other factors identified in the Company's filings with the Securities and Exchange Commission, press releases and/or other public communications.  The following discussion and analysis provides information which the Companys management believes to be relevant to an assessment and understanding of the Company's results of operations and financial condition. This discussion should be read together with the Company's financial statements and the notes to financial statements, which are included in this report.  This management's discussion and analysis or plan of operation should be read in conjunction with the financial statements and notes thereto of the Company for the three months ended March 31, 2009. The reported results may not necessarily reflect the future.  Operations  We have been performing commercial and residential real estate appraisals, principally in southeast Idaho, since 1976. As of May 1, 2009, we had one employee, John S. Chidester, who is currently available substantially on a full-time basis. Mr. Chidester, who is not under contract, will devote the amount of time to us that is necessary to perform the engagements obtained and to seek new ones.We also use independent contractors, who are relatives of Mr. Chidester, to assist in some appraisals. These independent contractors hold all necessary licenses.  A summary of operating results for the three month ended March 31, 2009 and 2008 follows:  20092008Revenues$46,525$30,575Operating expenses:Compensation and contractor fees35,18922,129General and administrative11,3368,446Total46,52530,575Net (loss)$-0-$-0-     7    Revenues -We completed 25 residential and 8 commercial appraisals during the three month ended March 31, 2009. We also received revenues aggregating $5,000 from assisting a county to prepare assessors manuals during 2009.  Compensation and contractor fees - consist of salary expenses to Mr. Chidester and fees to independent contractors who are related to Mr. Chidester.  General and administrative expenses  The principal component of general and administrative expenses is approximately $13,500 in each period presented paid to John Chidester in consideration for providing office space and services. In three months ending March 31, 2009, there were also $4,240 for professional fees and $479 for continuing education. The change generally corresponds to the change in revenues.  Other -As a corporate policy, we will not incur any cash obligations that we cannot satisfy with known resources, of which there are currently none except as described in Liquidity below.  Liquidity  We do not have any credit facilities or other commitments for debt or equity financing. No assurances can be given that advances when needed will be available. We do not believe that we need funding to cover current operations because we do not have a capital intensive business plan and can also use independent contractors, if necessary or advisable, to assist in many projects. We will use funding, if obtained, to cover the salary of our president and to pay for marketing materials and proposal efforts. We currently have no formal salary arrangements with Mr. Chidester. While no annual salary or length of employment has been determined to date, we anticipate providing an annual salary not to exceed $100,000 commencing with the successful completion of several engagements. The salary will be paid out of revenues, if any, or accrued if sufficient cash is not available to make payments.The accrual will begin after we have generated revenue of at least $25,000.We may seek funding although have not done so as yet.  However, we will conduct operations and seek client engagements even if no funding is obtained. The private capital will be sought from former business associates of our president or private investors referred to us by those associates. If a market for our shares ever develops, of which there can be no assurances and which is unlikely in the foreseeable future, we will use shares to compensate employees/consultants wherever possible.  To date, we have not sought any funding source and have not authorized any person or entity to seek out funding on our behalf.  We are now subject to the reporting requirements of the Exchange Act of 1934 and will incur ongoing expenses associated with professional fees for accounting, legal and a host of other expenses for annual reports and proxy statements. We estimate that these costs may range up to $50,000 per year for the next few years and will be higher if our business volume and activity increases but lower during the first year of being public because our overall business volume will be lower, and we will not yet be subject to the requirements of Section 404 of the Sarbanes-Oxley Act of 2002. These obligations will reduce our ability and resources to fund other aspects of our business. We hope to be able to use our status as a public company to increase our ability to use noncash means of settling obligations and compensating independent contractors who provide services for us, although there can be no assurances that we will be successful in any of those efforts. We will reduce the compensation levels paid to management if there is insufficient cash generated from operations to satisfy these costs.  To meet commitments that become due more than 12 months in the future, we will have to obtain client engagements in sufficient number and at sufficient levels of profitability. There does not currently appear to be any other viable source of long-term financing except that management may consider various sources of debt and/or equity financing if the same financing can be obtained on terms deemed reasonable to management.     8    Recently Issued Accounting Pronouncements  The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on its results of operations, financial position or cash flow.  Critical Accounting Policies  The preparation of financial statements and related notes requires us to make judgments, estimates, and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities.  An accounting policy is considered to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made, and if different estimates that reasonably could have been used, or changes in the accounting estimates that are reasonably likely to occur periodically, could materially impact the financial statements.  Financial Reporting Release No. 60 requires all companies to include a discussion of critical accounting policies or methods used in the preparation of financial statements.  There are no critical policies or decisions that rely on judgments that are based on assumptions about matters that are highly uncertain at the time the estimate is made.  Note 2to the financial statements included in the Companys Annual Report on Form 10 K as filed with the United States Securities and Exchange Commission on April 10, 2009  includes a summary of the significant accounting policies and methods used in the preparation of our financial statements.  Seasonality  We do not typically experience a significant seasonal impact in our business.  Off-Balance Sheet Arrangements  We have no off-balance sheet arrangements, as defined in Item 303(a)(4)(ii) of Regulation S-K, obligations under any guarantee contracts or contingent obligations. We also have no other commitments, other than the costs of being a public company that will increase our operating costs or cash requirements in the future.  ITEM 3  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK  Pursuant to Item 305(e) of Regulation S-K (§ 229.305(e)), the Company is not required to provide the information required by this Item as it is a smaller reporting company, as defined by Rule 229.10(f)(1).  ITEM 4  CONTROLS AND PROCEDURES  We carried out an evaluation, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, of  the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act (defined below)). Based upon that evaluation, our principal executive officer and principal financial officer concluded that, as of the end of the period covered in this report, our disclosure controls and procedures were not effective to ensure that information required to be disclosed in reports filed under the Securities Exchange Act of 1934, as amended (the "Exchange Act") is recorded, processed, summarized and reported within the required time periods and is accumulated and communicated to our management,  including our principal executive officer  and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.  Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures as of March 31, 2009. Based on this evaluation, our management has concluded that our disclosure controls and procedures adequately ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms.  The evaluation of our disclosure controls and procedures did not identify any change in our internal control over financial reporting that occurred during or subsequent to the quarter ended March 31, 2009 that has materially affected or is reasonably likely to materially affect our internal control over such reporting.   9    PART II  OTHER INFORMATION  Item 1Legal ProceedingsNoneItem 2Unregistered Sale of Equity Securities and Use of ProceedsNoneItem 3Defaults Upon Senior SecuritiesNoneItem 4Submission of Matters to a Vote of ShareholdersNoneItem 5Other InformationNone  Item 6 Exhibits and Reports on Form 8-K  (a)           Exhibits  Exhibit NumberDescription31.1Section 302 Certification Of Chief Executive And Chief Financial Officer32.1Certification Pursuant To 18 U.S.C. Section 1350, As Adopted Pursuant To Section 906 Of The Sarbanes-Oxley Act Of 2002  Chief Executive And Chief Financial Officer  (b)           Reports of Form 8-K  None.      10    Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.      Town and Country Appraisal Service, Inc.(Registrant)/s/ John S. ChidesterJohn S. ChidesterTitle: President and Chief Financial OfficerMay 19, 2009    11